DATE ANNOUNCED FOR MPs TO DEBATE A STAMP DUTY HOLIDAY EXTENSION
BREAKING PROPERTY NEWS
Date has been announced for debate to take place 1 February 2021
BREAKING NEWS It has now been announced that MPs will debate the stamp duty holiday extension. The Debate is due to take place on 1st February 2021 following an online petition. The 90 minute debate will commence at 4.30pm with a member of the Petitions Committee, Elliot Colburn MP, leading the session.
CURRENT STAMP DUTY HOLIDAY EXTENSION
Currently in the stamp duty cut, announced back in July 2020 and which is due to last until 31 March this year, anyone completing on a main residence costing up to £500,000 between dates 8 July 2020 and 31 March 2021 will not have to pay any stamp duty & more expensive properties will only be taxed on their value above that amount. Potentially saving buyers up to as much as £15k buying a property of £500k or more.
The move aimed to help buyers who had taken a financial hit because of the coronavirus crisis and essentially meant buyers could potentially save thousands of pounds in purchasing their next property.
This certainly stimulated the property sales towards the back end of last year 2020 and into Jan 2021 where we are seeing continued activity in the housing market.
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So what is stamp duty land tax?
Stamp duty land tax (SDLT) is a lump sum payment those buying a property or piece of land over a certain price have to pay. Find out more CLICK HERE Gov.uk
Prior to Wednesday 8th July 2020 all house-buyers in England & Northern Ireland paid stamp duty on properties over £125k or if you were a first-time home buyer you did not need to pay stamp duty unless the property you were buying was more than £300k. The rate a buyer had to pay varied, and you would have expected to pay more stamp duty if the property was worth more or was indeed your second property.
A Landlord previously paid an extra 3% stamp duty when they purchased a ‘buy to let’ property.
Stamp duty rates differ in Scotland & Wales.
Mr Sunak announced the stamp duty cut telling the Commons: “Right now, there is no stamp duty on transactions below £125,000. Today I am increasing the threshold to £500,000. This will be a temporary cut running until March 31 2021 and as is always the case, these changes to stamp duty will take effect immediately.”
But what did that mean if you were a first time buyer?
The threshold had been increased to £500k which would allow potential home buyers to look on the lower end of the housing market to avoid having to pay stamp duty for a significant period of time. If a first-time buyer purchases a property for £500k during this new system it could allow them to save £10k on stamp duty, compared to the previous rate.This stamp duty holiday was to boost property transactions and provide a stimulus through the additional spending that is associated with moving house. Looking at the past 6 months it has certainly done what was intended, with activity high, despite the pandemic.
There are always winners and losers
It had been forecasted back in July 2020, that the Chancellor’s announcement would give a welcome boost to the housing market which in turn will have positive knock-on effects for the wider economy with this stamp duty cut. However, for people who have did finally manage to complete on a purchase of their home during the lockdown period or immediately afterwards, this came as a bitter blow.
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